XPO is making a strategic move to separate divisions into two companies that organize around similar characteristics. Digital freight brokerage and the LTL business have similar operating cadences and are being combined into XPORemainCo. The move is likely to unlock some value creation for stockholders through the potential for improved valuation multiples. The new company structure allows for more strategic focus on fast growing areas. like dynamic/digital freight brokerage.
Quotes from Article:
“By uncoupling our transportation and logistics segments, we intend to create two high-performing, pure-play companies to serve the best interests of all our stakeholders,”
“XPO argues that those two divisions have really been operating on different planes all along”